 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
recourse vs. non-recourse loan foreclosure short sale
Hi all, I am in a pretty bad situation and need some help/advise. I live in California, and purchased the house I am currently living in 2 years ago. Now my first loan (460K) is adjusting from 5.25% to 8.5%, which means an increase of $1200 in montly payment that I can no longer afford. I still owe $80K on my second loan. I had been trying to re-finance both loans into one for the last month, with no more hope that the mortgage can be re-financed due to high loan to value and high debt ratio. I tried negotiating a lower interest rate with first lender, still waiting to hear back. I also thought to try to see if both lenders will allow me to do a short-sale, but the worst that comes, it might be a foreclosure at the end of this road, if they don't grant me a short sale, or offer me a interest rate that I can afford. I just heard that in California, since this is the original loans that I obtained to purchase the house, it might be a non-recourse loan, means that the lenders cannot come after me with a deficiency judgement for the amount that's still owed on the loan balance (after all the fees, closing cost, etc, I won't be able to get $540K for the house to cover both loans). Is this true? How can I find out for sure if my first and second loans are non-recourse, or recourse loan? Also, does it make a difference on how non-recourse loan works if I short-sale the house, or the lender forecloses on the house? How does taxes work with non-recouse loan? Will I get 1099 for the difference if I short-sale with non-recourse loan?
Advanced thank you for any help/advise! |
||||
|
||||
|
Deficiency Judgment
Lenders may not seek a deficiency judgment if (1) the foreclosure is non-judicial or if (2) foreclosure is on a purchase money obligation. The same rules do not apply to guarantee or later lien holders. The lenders may seize alternative collateral. If the lender forecloses by filing a lawsuit, then the lender can obtain both a foreclosure sale order and a judgment against the borrower for a deficiency after the court-ordered sale, but only for the difference between the judgment and the fair value of the security. Most common form of foreclosure in California is Non-judicial foreclosure. |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
I am in desperate need of advice! My husband and I bought our house in 2004 and have refinanced twice since then, due to medical bills, job loss, etc. My husband got taken for a real ride with this last refi he signed. We are currently in a negative am adding $2000 a month to our loan... we need...
My father died of cance but before he died for like a year he suffered and I witnessed the whole thing. Him going through that. Now whenever anyone's sick like real sick not just cold like hospital sick or can't get up sick. I get really nervouse and like ant to cry. Even if I tell myself its...
More than one month ago a counterfeit check was allowed to clear my citibank account for more than 1500 dollars. The check was completely counterfeit, the signature was not even close and the check stock used does not even match mine. When I first contacted the bank they immediately admitted that...
My Wife Filed For Divorce. I Didn't Appear In Court. It Is Now Final. Do I Have Any Recourse To Get Things Overturned? (spousal Support Or Custody).
Do I have any recourse (in Small Claims Court)? I wanted to look better (less tired?) for my son's wedding and made an appointment at a dermatologist's office to have cosmetic injections. I wasn't given any definite price before the injections, but discussion with her assistant led me to believe...
View more questions Search
|
